Tag Archives: Judge Steven Rhodes

The lawyer for an Ann Arbor architect who sued the city of Detroit and won a $2 million verdict has asked Bankruptcy Judge Steven Rhodes to lift the automatic stay in Detroit’s historic bankruptcy case and let him pursue the matter in front of the Michigan Supreme Court.

The request is one of what could be many such requests, which Rhodes anticipated.

Now, Rhodes is considering whether to create a committee so similarly-situated plaintiffs are adequately represented during the bankruptcy case. “I think the last thing any of us wants is a flood of motions for reliefs of stay filed by people with lawsuits against the city,” Rhodes said.

“I don’t know if there are any other people in this position,” said Farmington Hills attorney Raymond Guzall, who represents the plaintiff and asked that the stay be lifted. “He has a sizable judgment and the facts are pretty unique.”

The plaintiff, Michael Beydoun, wants his payout despite the city’s Chapter 9 filing. “I’m the victim and this isn’t right,” Beydoun said, reports The Detroit News. “Right now, they rob you without a gun. That’s what Kevyn Orr and Rick Snyder are doing.”

Beydoun sued and won the judgment after he was severely injured in 2009 when a Detroit police officer ran a red light and crashed into his car. The city unsuccessfully appealed. In June, the city tried to get Beydoun to accept less money, said Guzall, or otherwise the city said it would take the case to the Supreme Court. Then a few days later, the city filed for bankruptcy, which froze the payout.

Beydoun’s request to lift the stay suggested the city’s bankruptcy filing was a last-minute bid to dodge paying his $2 million judgment, among others.

After two hours of arguments, Bankruptcy Judge Steven Rhodes has suspended any existing lawsuits and has barred any new ones involving Detroit’s bankruptcy.

Rhodes said his court will be the only venue for any legal action involving the bankruptcy, reports The Associated Press.

The ruling comes in light of claims from city of Detroit retirees, who assert their pensions are at risk due to the bankruptcy. They argue their retirement funds are protected under the Michigan Constitution. Ingham County Circuit Judge Rosemarie Aqualina had agreed, holding that Gov. Rick Snyder acted contrary to the state constitution when approving Detroit’s Chapter 9 filing.

The MiLW Website

The MiLW Daily Alert

Get the latest Michigan legal news and information delivered to your email inbox, courtesy of Michigan Lawyers Weekly. Sign up for the MiLW Daily Alert. Its free and informative. Click here for more information.